Oregon Statutes 316.801 – Addition for certain amounts withdrawn; penalty; exceptions
(1) There shall be added to federal taxable income the amount of funds a taxpayer withdraws from a first-time home buyer savings account established under ORS § 316.797, if:
Terms Used In Oregon Statutes 316.801
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Department: means the Department of Revenue. See Oregon Statutes 316.022
- Taxable income: means the taxable income as defined in subsection (a) or (b), section 63 of the Internal Revenue Code, with such additions, subtractions and adjustments as are prescribed by this chapter. See Oregon Statutes 316.022
- Taxpayer: means any natural person, estate, trust, or beneficiary whose income is in whole or in part subject to the taxes imposed by this chapter, or any employer required by this chapter to withhold personal income taxes from the compensation of employees for remittance to the state. See Oregon Statutes 316.022
- United States: includes territories, outlying possessions and the District of Columbia. See Oregon Statutes 174.100
(a) Those funds were used for a purpose other than eligible costs;
(b) In this tax year or a previous tax year, those funds were subtracted or exempted from federal taxable income under ORS § 316.798; and
(c) Those funds were not deposited into another first-time home buyer savings account held by the taxpayer.
(2) There shall be added to federal taxable income the amount of funds a taxpayer holds in a first-time home buyer savings account not expended on eligible costs by December 31 of the last year of the 10-year period described under ORS § 316.798 (3) if in a previous tax year those funds were subtracted or exempted from federal taxable income under ORS § 316.798.
(3) The Department of Revenue shall assess a penalty against the taxpayer in the amount of five percent of the funds withdrawn from a taxpayer’s first-time home buyer savings account, if:
(a) The withdrawal of funds occurs during the 10-year period set forth in ORS § 316.798 (3); and
(b) The withdrawn funds are not used for eligible costs or deposited into another first-time home buyer savings account held by the taxpayer.
(4) The penalty described in subsection (3) of this section does not apply to any funds withdrawn from a first-time home buyer savings account of:
(a) A taxpayer who is deceased;
(b) A taxpayer who has filed for protection under the United States Bankruptcy Code (11 U.S.C. § 101 et seq.); or
(c) A taxpayer whose loss of use or function of any portion of the body permanently incapacitates the taxpayer from regularly performing work at a gainful and suitable occupation. [2018 c.109 § 7]
[1969 c.493 § 71; renumbered 316.970]